HOW TO MAKE $20.00 FOR EVERY $1.00 INVESTED

It has been said you can lift the Rock of Gibraltar if you have a

fulcrum point and long enough lever. When we refer to "financial

leverage" we are talking about the same principle. If you buy a

business building for $100,000 with $5,000 down, this is using

the leverage of 20 to 1. For a mere 1/20th of the purchase price, you

own and control property that is 20 times more valuable

than your cash investment.

If the income of the building is only sufficient to make the

payments and expenses and you don't gain any cash flow, you are

still getting the building paid for and perhaps in 5 years or so,

with continuing inflation, you can sell the building for

$200,000... a gain of $95,000 on a $5,000 investment. This is the

potential result of proper use of leverage.

A good rule to follow in applying leverage, relevant to any

business venture for that matter always provides a reserve.

Hold back some cash for emergencies. Hold back additional capital

so if you go under you will have a nest egg to start a new

venture.

Sometimes when things go sour and there is no way out it is

better to take the least loss possible, save what you can, and get

out...NOW! Use the remainder to again find financing, margin

leases, mortgages, franchises, and all the other manners of using

money belonging to others for both their profits and yours.

Selling your property for cash then leasing back on a long-term

a lease is another form of leverage. If you sell for one million

dollars cash and lease back at $10,000 per month, you have

generated tremendous leverage. You now have $1,000,000 each with

10% down for each property, you now control 10 million dollars

worth of income-producing properties. Sometimes it is possible to

use options to hold property, with very little cash down, until

you can obtain a title and take possession. This can produce

fantastic leverage if planned property.

Going public is another method used to gain leverage by using

other people's money. You receive money from the public for

shares of your corporate stock and at the same time establish a

market value for your unissued stock.

Before you apply leverage on any proposition, be sure to know just

what you are doing. There must be a continuous favorable cash

flow to service your debt, pay all your costs and expenses, and

give you a reasonable profit. If weakness occurs in any one or

several of your business entities, it could drag down your entire

organization.

2. IN FRANCHISES

Franchising your business operation packet is another form of

leverage. You are selling others your know-how and the right to

use your system and/or product for a price, either a share of the

profits, a bulk payment, or a combination of both.

It is not as simple as it used to be to become a franchiser, due

to controls and red tape established by the various state and

governmental agencies. In some states, it is just about impossible

for the layman to proceed to wade through all the red tape

required to satisfy the laws. However, if it were easy to do, it

probably would not be profitable anyway.

When you have met all the requirements of the various agencies,

you will have an operating manual and Pro-forma accounting

statement...You will have developed a turn-key package for your

franchise offering

To get started right get revised statutes of the state from the

Secretary of State and study the requirements for establishing

and selling franchises.

As your franchises become better known and after you have a few

locations, instead of selling one franchise at a time, offer area

franchise to "master" franchise holders. Get a portion of the

set-up charges for each area plus a continuing percentage of

gross business from each operating unit.

3 IN THE STOCK MARKET

*BONDS

You can earn interest on non-existent money and buy bonds regularly without ever paying for any of them except the

first five bonds. You will need $500 in cash and a brokerage

account in both the U.S. and Canada. Open an account with a

Canadian brokerage House and deposit a &500 check with them. On

the same day, before your check clears, open a brokerage account

in your hometown. This one may be opened without any money.

You buy new-issue bonds through your American Broker and state

that they MUST be delivered to your Canadian Broker for payment.

The very day that you purchase the bonds, you will start drawing

interest. It will take 5 or 6 weeks for the bonds to be

delivered, and all the time you will be earning interest.

With this plan, you can space your order so that you can have

$1000,000 or more in bonds on order. and when they arrive at your

Canadian Broker, it works like this:

The Broker accepts the first five bonds of $1,000 each and places

them in your account. When the second $5,000 worth arrives, (you

must always order in $5,000 units), he then sells the first bonds

to pay for the third, etc...

The results are BIG profits for non-cash existing money. You can

earn up to 80% interest on the money you don't even have.

Often the new bonds will have an increase in resale value to add

to the interest earned. Thus a $5,000 bond at an 8% interest rate

that takes 60 days to deliver would earn $67.00 interest. If they

go up in value, you may pick up an additional $200 to $500 or

even more when they are sold.

* PENNY STOCK

Periodically a great deal of money has been made dealing in Penny

Stock but it is highly speculative and is perhaps once in a

lifetime that one can hit it right to cash in with a

spectacularly high yield.

To take some of the speculations out of it, many investors

purchase only 100 shares or so, of a number of different

company's stock. In this way, they may only $50 to $100 invested

in each of 40 to 50 firms. This is one of the best ways to go

when getting acquainted with this kind of investment.

The stock of one of the Nation's larger firms, which now has

outlets in about every city in the United States, was selling at

60 cents a share in 1963. 100 shares at that time for a total of

$60 is now valued at over $75,000!

$9,000 invested in 1948 in stock of what was then a small timber

firm was worth over $1,000,000 a few years ago and also

would have proceeded average dividends over the years sufficient to

equal a top salary each year. A person who invested at that time

would have been able to "goof off" from that time forward,

receive more money than working for a living and still have over

a million dollars in the bank or for other investments.

There are various newsletters covering the low-priced stock. One

should subscribe to several and analyze the information before

investing.